After COVID 19, many businesses have been forced to digitise and make the leap to teleworking. In situations like the one we are experiencing, we must know how to react quickly. Only the digital connection between people, clients and employees allow us to take on new business opportunities. Digital transformation is not a remedy, but an opportunity, which can become a business strength.
We want this article to support all businessmen and entrepreneurs who want to make their digital projects profitable in a time of change. If your company is not yet on the network, what are you waiting for? Running your own company or online business is not easy at first, but you will see that it brings you many satisfactions over time.
Sometimes we have a great idea, but we don't have enough money to develop it. If that is your case, you can look for an investment partner or online business sale who provides the necessary capital and/or takes care of the financial part. Here are some tips to help you sell your business idea to investors:
1. Your Idea is Important, but You are More Important than that Idea
Work on your personal safety because only someone confident can sell your idea well. If you are afraid of public speaking or have difficulty expressing yourself, it's time to work on it. Another very important point is your personal presentation, which must be impeccable. Your image must support your ability, knowledge, and experience.
2. Present Your Project as a Solution to an Existing Problem
Every company or online business is based on satisfying a specific need. Therefore, identify what you are trying to satisfy, solve or how you want to bring happiness to potential customers. Explain how your products or services will improve the quality of life of your consumers.
3. Know Your Investors Well
Present your online business idea to people who may really be interested. That is, they are involved in the field in which you want to develop your company. On the other hand, look for someone you get along with. Remember that this partner relationship is long-term, so both of you must trust each other.
4. Get to Know Your Potential Customers Well
In addition to being clear about what you want to do, you must be clear about whom you will address. Define your audience, because it is not the same to offer a product to 20 people who could buy it than to 10 thousand. When you talk to your potential partner, show him evidence that proves the effectiveness of your idea.
5. The Numbers are Important
Always use statistics, percentages, make calculations and projections. Your idea may be cute and ingenious, but if it is not going to be profitable, neither you nor the investor will be in the best interest to develop it. Not being clear about this will make you lose credibility. Remember that there is a difference between a dreamer and an entrepreneur.
6. Clearly Define the Investor's Stake in the Company
You can find an investor who will lend you the money you need or one who wants to have a part of the company's shares. Keep in mind that if the latter happens, they will become your partner and will have the right to participate in strategic decision-making. You must evaluate each alternative's pros and cons to define what type of investor you are looking for and what you are willing to give in return.
7. Don't be Obsessed with Conversion, but with Web Traffic
Many companies focus all their efforts on generating sales, and yes, it is important. But how to achieve it? In the beginning, you should obtain the greatest possible reach since reaching a greater number of people has more possibility of generating a sale. Think of the funnel/sales funnel; the higher the top, the more customers you will get in the conversion part.
8. Whom to Sell a Business Online?
Another important difference between the sale of a ready-made business is a much narrower circle of potential buyers, only a few of whom, in turn, can seriously consider an offer for sale.
But the screening continues even further, as a rule, nine out of ten "candidates" for new business owners get acquainted with it, ask the price, bargain, and in the end, they DO NOT buy the company.
Choosing the right moment to sell your business and not delaying this decision's implementation is the basis of success for the seller.
9. Legal Expertise of Property Rights
All work should be carried out related to checking the title documents of the owner (s) for the company and all values (both material and non-material, transferred to the new owner.
10. Objective Assessment of the Company
The essence is to correctly determine the starting cost of the business being sold, taking into account its tangible and intangible assets, the occupied business niche, market position, etc.
11. Why does an Online Business Need to be Prepared for Sale?
Experience in the market shows that the more thoroughly a company is prepared for sale, the faster and (more importantly) the more profitable it can be sold. What is the reason for this?
Suppose you were going to sell an apartment or a car. Would you really not have tried to put them to, as far as possible, hide weaknesses and defects (if any) and emphasise on the advantages, thanks to which you can significantly increase the price.
12. Choosing the Right Time to Sell Your Business
The timing of the sale plays a key role in its success. It is strongly recommended that you choose to sell in one of the following periods:
- The growth phase : 3 to 5 years after the creation of the company, the turnover is still developing. This is the period when it starts to be profitable but still achieves fairly modest turnover. The purchaser, therefore, sees it as an opportunity to be seized.
- The company's transmission phase is still profitable and continues to develop but with a relatively lower development rate than during the maturity phase. This period is generally from the 8th to the 12th year of the company. During this phase, the buyer sees an opportunity to obtain a good price.
- Before the period of decline: The company still shows excellent results but is no longer growing. Despite everything, it can continue to attract buyers.
The most important thing, always, is that you believe in yourself and your idea. The investor will notice your enthusiasm, passion, and desire to work, which will help you sell your proposal. Remember that while it is important that you are excited, you should not stop being realistic. Being clear about the business's pros and cons will help you build confidence in the potential investor. You will surely find the one you need soon.
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Q. Why sell part of your business?
Ans. A company's sale can represent a real lever of growth and a real source of heritage valuation. However, this transfer must be anticipated as much as possible to find the right buyer and to carry it out under the best conditions. Sometimes the reasons can be very closely related to the personal life of the leader.
Q. How to set the selling price of a share?
Ans. On the stock market, the selling price of shares is determined by supply and demand. The intrinsic value of a share remains a function of the company's value, of which it represents a share of the capital.
Q. How to calculate the selling price of a business?
Ans. The patrimonial method: evaluating the company on what it owns by making an inventory of its assets to withdraw the liabilities. Thus, the company's value is assessed by its net position or equity, including unallocated profit, capital, and reserves.